Sat, Mar 25, 2017
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Global macro dominates hedge fund returns and asset raising, while strong performing convertible arb continues to see outflows - Dow Jones Credit Suisse Hedge Fund Index

Tuesday, October 26, 2010
Opalesque Industry Update - Currency fluctuations and rising gold prices helped drive much of the global macro gains during September, cites a newly released update from the team at Dow Jones Credit Suisse Hedge Fund Index. The strategy saw gains of +2.72% during the month (+9.3% YTD) and has also been a favorite for investors returning to the hedge fund markets.

The best performing global macro fund on the DJCSHFI logged gains of 27% during September.

“On a nominal basis, the Global Macro and Event Driven sectors [event driven rose 3.20% in September, +6.3% YTD] have experienced the highest asset flows year-to-date. In the third quarter, event driven surpassed all of the other sectors with $4bn in asset flows. Nevertheless, the Global Macro sector has far surpassed the others on a year-to-date basis with $11bn in inflows. This demonstrates the desire of investors to invest their assets in tactical strategies, which have historically been able to withstand more volatile market corrections.”

Convertible arbitrage
One strategy that is still struggling to gain back investor confidence in convertible arbitrage, which has thus far returned 7.5% this year, and that gained +47.3% during 2009. It is also the only strategy on the DJCSHFI that can claim positive returns for every month during 2010 for every manager listed in the index. So far this year the best performing convertible arbitrage fund listed on the index has returned 65.7% and the worst performing fund listed has been flat.

However, even with this strong showing during 2010, these managers continue to watch assets leave their space. Convertible arb saw outflows during 3Q2010 (although admittedly they have slowed from the previous quarter), as the industry in total saw net inflows of approximately $14bn. To note, the other two strategies that saw outflows during 3Q2010 were dedicated short bias and emerging markets.

There is some sense that convertible arb redemptions continue to be from funds that remain gated, and are only flowing back out to investors now. Investors also continue to be gun shy of the strategy, which was the second worst performer during the 2008 crisis (returning -32% that year).

Source

kb

What do you think?

   Use "anonymous" as my name    |   Alert me via email on new comments   |   
Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing

 



  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Hedge fund liquidations in 2016 surpass 2009 levels, new launches decline[more]

    Benedicte Gravrand, Opalesque Geneva: Even as the hedge fund industry's total assets exceeded the $3tln milestone last year, hedge fund liquidations increased. So much so that 2016 had the highest number of liquidations since 2008, claims the latest HFR Market Microstructure Report, re

  2. Hedge funds find no joy in macro as returns lag Trump rally[more]

    From Gulfnews.com: In 2017, macro hedge funds were expected to shine. So far? Not so much. It's been a far from impressive first two months for funds that trade around macroeconomic events. Discretionary funds rose just 0.3 per cent through February, according to Hedge Fund Research Inc., while the

  3. Strategies - Billionaire investor Marc Lasry shares how he's playing markets right now, Classic models are failing FX hedge funds desperate for return[more]

    Billionaire investor Marc Lasry shares how he's playing markets right now From CNBC.com: Buy on the prospect of deregulation. Sell on the enactment of deregulation. That's the strategy that billionaire investor Marc Lasry is implementing, according to an interview with CNBC in Las Vegas

  4. Opalesque Exclusive: Aberdeen makes the case for the lower mid-market[more]

    Bailey McCann, Opalesque New York: Aberdeen Asset Management has released a new paper focused on lower mid-market private equity. According to the paper, this segment of the private equity market is gaining popularity with private equity investors that are looking for multiple expansion and less

  5. Hedge funds await outcome of French elections, feel pinch on lower oil prices & weak dollar[more]

    Komfie Manalo, Opalesque Asia: Hedge funds felt the pinch of lower oil prices and weak U.S. dollar as the Lyxor Hedge Fund Index was marginally down as of the week ending 14 March, Lyxor Asset Management said in its Weekly Briefing. The Lyxor He